2 Non Effective Examples

& 1 Example of an Effective Letter

1: How NOT to Write a Price Negotiation Letter

Good day ABC,

Thank you for your proposal. Our company reviews your bid and found high. Therefore,
you are requested to submit a revised bid.

We also have reviewed your Prices.

Regards,
ABC

2: How NOT to Write a Price Negotiation Letter

Good day ABC,

Please be advised that our offer is $10000 (your bid – 10%).

Kindly be advised that we need your reply by Monday ETC

Best regards,

ABC

…………………
3: How to Write an Effective Price Negotiation Letter
Dear ABC SUPPLIER,

Thank you for your proposal. We sincerely appreciate the effort that you have put in
submitting such a comprehensive proposal for our company.
We do understand that you would have spent considerable time and resources to come up
with this proposal which outlines in details how you are going to provide what we need.

I and my team reviewed the whole proposal in detail, and overall we are happy with it. At
the same time there’s one issue which will probably stop us from giving this contract
to you.

Let me explain:

Our PARTNER has given us a specific budget for this contract. He also has instructed
our contracts team to get another 3 quotes from other suppliers, with a view to have a
competitive pricing quoted.

On my side I managed to convince him that we should hold on from getting quotes from
other suppliers, since in the past you have done a very good job. I promised him that we
are going to get this contract within the budget that he gave. He agreed to this, but if we
cannot get your proposed price within our budget, then we would have to open this to
another 3 suppliers.

Again I personally would love to have you as our supplier. But to do this we would need
your price to better than what you have quoted in your initial proposal. Your price should
be (MENTION YOUR PROFIT PERCENTAGE HERE %) lower at a final price of
USD (MENTION YOUR PRICE HERE).

If you cannot offer this price, I’m afraid that we would have to look at getting other
suppliers for this job.

Again I hope and trust to get your acceptance of this offer from our side. I trust you
understand that in the past we have been loyal clients to you and I am sure that in the
future your flexibility in your offer should result in future work for you and your
organization.

Looking forward to hearing from you by Soon.

Best Regards

ABC